BPIF's latest published book,Printing(Outlook),is a quarterly industry health research report.The report found that after the COVID-19 outbreak in the first quarter of 2020,the workload did not improve significantly until the second quarter of this year as the lockdown was lifted and further opening of the economy began.
Production of 59% of printers increased in the third quarter
As expected,the third quarter experienced sustained growth and higher activity levels,and this growth trend is expected to continue in the fourth quarter,despite supply chain challenges and significant increases in input costs.
The survey found that in the third quarter of 2021,59% of printers succeed in increasing production levels.Another 33 percent were able to maintain stable production,while the remaining 8percent fell.
BPIF economist(Kyle Jardine)said："The vacation is over,so printers' customers have employees,the economy is starting to recover,and more work is being generated and approved."
The damage from the estimated novel coronavirus quarantine has not been largely achieved,and the company was able to survive the August holiday without causing much drag on production.
As many printers are positive about production growth at the end of the year,especially with the help of marketing campaigns around Halloween and Christmas,strong activity levels are expected to continue into the fourth quarter.
Output of 48% is expected to increase,while 42% predict that they will be able to maintain stable output levels in the fourth quarter.Only 10% of the remaining companies expect their output levels to fall.
Shortage of raw material is the most challenging problem
Eighty -five percent of respondents believed that printing costs were the biggest commercial concern for printing companies for the second consecutive quarter.Getting a skilled workforce was the second biggest focus,with 61% of companies choosing that.Energy costs are the third largest concern,with 55% of companies choosing this.
Six -eight percent of respondents said concerns about shortages of imported inputs and raw materials had become the biggest challenge,slightly above the supply of domestic inputs.Forty-one percent of the respondents chose "other cost pressures" to rank third.
Cost transfer is also a difficult problem for the British printing industry
Companies across the industry have experienced unprecedented significant increases in costs in all the major cost areas of their business,with upward pressure expected to increase in the fourth quarter.
The BPIF said increases in paper and cardboard costs continued to pose the biggest inflationary pressures in the third quarter,but cost inflation remains extremely strong.
Jadin said:"Historically,the industry has been very bad at passing-on cost increases,but in the current situation,we find that customers are aware of cost growth."
"That's why this time,companies seem to be able to pass on more costs than ever before."
"But all you can do,if costs continue to rise,it becomes harder to return to customers and keep increasing costs.Obviously,at some point there is concerns that work level will be hindered."
Industry capacity utilization rate continued to improve strongly
The survey also found that the vast majority(91%)of the companies were not expected to cut jods by the end of December.
The 100percent of companies said they expected that at least 50 percent of employees currently working at home would return to their office at least in part at the--by the end of December.
Industry capacity utilization continued to increase strongly,with capacity utilization being higher in October than in July.
Finally,the number of printing and packaging companies experiencing "severe"financial difficulties declined in the third quarter.The number of printing and packaging companies experiencing "severe"financial difficulties also fell to more"more"levels in the third quarter.
